Oil prices rebounded from over three-month lows on Tuesday, lifted by a drop in the dollar, but concerns of ongoing oversupply weighed on markets and many traders are raising their bets on further price falls.

International Brent crude oil futures were trading at $44.93 per barrel at 0501 GMT, up 21 cents from their last close. U.S. West Texas Intermediate (WTI) crude was at $43.23, up 10 cents per barrel.

Brent hit its lowest level since May the previous day, while WTI hit its lowest level since April.

Traders said the higher prices were partly a correction after the previous day's sharp falls, and also reflected a more than 1 percent fall in the dollar against the Japanese yen on Tuesday.

As oil is traded in dollars, a drop in its value makes fuel imports cheaper for countries using other currencies, potentially spurring demand.

Hedge funds selling crude futures and options to close out these bullish positions has put downward pressure on oil prices in recent weeks.

You can see that the daily brent crude chart is in a downward channel right now, with a target of about 41.90 on the downside. It had not seen much love since the brexit drama. But we will keep an eye on this for our members! We have been in a down channel since the middle of JUNE so far, and things have not improved. Sellers keep coming in after a 1 or 2 day rally in brent crude.